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Taiwan stocks dropped 2.74 percent on Thursday to near a three-year closing low as banking shares such as Shin Kong Financial followed a Wall Street slump caused by a global financial crisis. The main TAIEX share index fell to an intraday low not seen in more than four years.
But it reclaimed some ground around noon after the government said it may use its National Stabilisation Fund to settle the market when necessary.The TAIEX closed down 158.92 points at 5,641.95, the weakest finish since October 2005. Major US indexes tumbled overnight on fears about more crises in the turbulent financial system.

Copyright Reuters, 2008

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